The Professional and Amateur Sports Protection Act (PASPA) of 1992 outlawed sports betting in the United States, but that didn't stop bettors from wagering.
People love placing bets on sporting events and were willing to do so illegally. Since PASPA was overturned five years ago, DraftKings Inc DKNG has been taking share in the booming legal U.S. sports betting market.
The Race To Take Sports Betting Share: DraftKings co-founder and CEO Jason Robins recalled that the overturning of PASPA came on the heels of the company's attempted merger with Flutter Entertainment PDYPF's FanDuel, which was ultimately blocked by the FTC, he said Wednesday at the "Benzinga Titans: Sports Betting Summit & Awards" event.
It was a very important moment for DraftKings because the company knew it had an opportunity to cement its place in the sports betting world.
"We went to work pretty much right away and figured out — without any prior real experience — how to build a sportsbook and we ended up being the first ones to launch," Robins said.
New Jersey was the first state to overturn the law outside of Nevada, and since then nearly two dozen states have legalized sports betting, he said.
"It's been really fast and really exciting and I think the best days of growth still lie ahead of us," Robins told Benzinga.
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DraftKings Bets On The Customer: DraftKings' online sportsbook is currently available in 21 states. By analyzing the data state by state, the company has been able to sharpen its approach to launching in new states, Robins said. The sports betting company has put together a model that consistently delivers results, he said.
By using prior data to make better decisions, DraftKings' CEO said the company is accelerating its path to profitability. There is a broad buy-in across the company and teams are working together to figure out what areas deserve more attention than others, he said.
"The more that we focus on becoming efficient actually helps us grow faster, helps us serve our customers better, it helps us serve our employees better and really that's what it's all about."
That relentless focus on improving to better serve the company and its customers has helped differentiate DraftKings from competitors in the space. Robins said the company is always asking itself what the customer wants and how it can eliminate bad experiences and ensure it delivers a great product.
"We just learn about the customer through the experiences that they have with us and try to serve them in the best way that we can," the DraftKings CEO said.
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Photo: Web Summit from Flickr.
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